Too posh. Too pricey. Bound to close down after a couple of years.

Jill Adams can barely contain her amusement as she reels off the views of cynics about Harvey Nichols opening in a city better known for its industrial heritage than its retail attractions.

"In fact, we've gone from strength to strength," she observes, dismissively waving an elegant arm. There is a Cartier watch glistening on her wrist, and a gleam of delight in her eyes.

For Jill is not describing doubts expressed by some detractors about Harvey Nichols launching a boutique in Bristol's new Cabot Circus development. Instead, she is recalling the gloomy predictions that preceded the opening of its store in Leeds in 1996.

"They said it wouldn't last. They reckoned people in Leeds weren't that much into fashion, and wouldn't spend that sort of money.

"But this is now one of the most successful Harvey Nichols stores outside London, and it's helped make Leeds a glamorous destination."

When Harvey Nichols – immortalised in the comedy series Absolutely Fabulous – came to Leeds, it was the first time the Knightsbridge fashion emporium had opened outside London. It now has 12 boutiques around the world, in cities ranging from Edinburgh to Riyadh.

Edina and Patsy might have choked upon their Bolly at the prospect of a Harvey Nichols in Leeds. But it led to the city becoming known as the "Knightsbridge of the North", after other leading retailers including Prada, Hugo Boss, Ted Baker and Paul Smith were attracted there.

It was remarkable transformation for a place that previously had flat cap and whippet image, and used to be spurned by affluent locals in favour of other shopping destinations including Harrogate, Manchester and York.

So can Bristol become the Knightsbridge of the West? Jill Adams, who is sales manager for Harvey Nichols in Leeds, has no doubts, declaring: "Harvey Nichols will make a difference in Bristol, just like it did in Leeds."

There are certainly parallels between the two cities. Like Leeds, a former hub of the textile trade, Bristol has a proud industrial heritage, but has been developing into a vibrant modern city in recent years.

Bristol also has a wealthy population, with the highest Gross Domestic Product per head of any English city outside London. However – as in Leeds before the arrival of Harvey Nichols – it has not been seen as a shopping destination by wealthy locals, who have preferred to shop in places such as Bath, Cheltenham and the Mall at Cribbs Causeway.

At Harvey Nichols in Leeds, the fashionably dressed customers making their way around the store provide elegant evidence of what has been described as the "Harvey Nichols effect", because of the way the store attracts affluent shoppers.

Gaynor Beaumont is a typical example. Her beautifully cut golden blonde hair is complemented by a golden tan, and she is wearing a Donna Karan sweater, Dolce & Gabbana trousers, and carrying a Prada handbag.

"Before Harvey Nichols came to Leeds I used to go shopping in London quite a lot. Now I come here about three times a month," says the mother of three, who lives in Harrogate, where her husband, Jeremy, owns a menswear shop.

Gaynor, who used to work in fashion before having children, adds: "Having Harvey Nichols in Leeds has changed to image of the city. More people come here to shop, and stores like Louis Vuitton have chosen to open here."

Gail Adams, a stunning former model who is wearing a Botega jumper and Lanvin trousers, is proof of how the arrival of Harvey Nichols has brought a new type of shopper to Leeds

She is Jill's sister, and had lived in London since embarking upon her modelling career some 20 years ago. However, she recently moved back to Leeds after seeing how her home city had changed following the arrival of Harvey Nichols.

"In London there is everything, but after Harvey Nichols came to Leeds I realised I wouldn't have to worry about what I'd do for shopping if I came back as suddenly everything was opening here.

"There's even a Vivienne Westwood store. I'm just waiting for Hermes to open and then I think Leeds will be complete."

We walk past a gold display case of Manolo Blahnik shoes, and rails filled with designer outfits – many of which have the sort of price tag that is presently more likely to be seen in Bristol on a small second-hand car than on a dress.

There's a sense of being in a parallel universe that is insulated from the recent financial crises that have sent reverberations around the world.

Credit crunch? The only crunching that seems to be going on here is up in the Fourth Floor Cafe, where diners are tucking into specials featuring crab and prawn cocktail with avocado, tomato salsa, and ciabatta croutons (£7) and slow-roast spiced organic pork belly with soy, sesame seed and honey dressing (£13).

Even someone who could not care less whether a clothing label is for Giorgio Armani or George at ASDA would find it hard not to enjoy themselves here.

Every table in the restaurant is full, and the sounds of chatter and laughter fill the air. It is a contrast to lunchtime in the centre of Leeds a decade or so ago, according to Nick Lowry, the finance and operations manager for Harvey Nichols in Leeds.

"There's a European cafe culture in Leeds now, but it was nothing like this about a decade ago," he recalls.

"Some people were quite dismissive of Leeds back then. They seemed to regard it as a place where people wore clogs.

"Harvey Nichols coming made a difference. Leeds was seen to be going places because Harvey Nichols had chosen to come here, and as a result retailers like Louis Vuitton and Mulberry chose to come here too.

"It will make a difference to Bristol in the same way. Bristol seems to be developing in a similar way to Leeds after difficulties in the past – I mean, people still remember the riots in Bristol."

Out in the ornate, glass-covered arcades of the Victoria Quarter – where Harvey Nichols is located between Jo Malone and Kurt Geiger – there are no cloth caps or whippets to be seen.

Instead, there is an almost Continental atmosphere as well-dressed shoppers and business executives stroll past fountains and stores including Ted Baker, Reiss and Lacoste.

Probably the only way a whippet would be seen here would be if its skinny little face was protruding from the top of a designer tote owned by someone who wanted to have a handbag dog among their accessories.

Alex Munro, a partner at Knight Frank in Leeds, saw how Harvey Nichols made a difference to real estate when it opened in the city, and he believes the so-called Harvey Nichols effect could also have an impact on Bristol. "Harvey Nichols ought to benefit Bristol if the Leeds experience is anything to go by," he declares.

"It has definitely given the city a competitive edge – and has also given Leeds some 'class'. This has always been an affluent area, but now we have something very aspirational."

Or, as Edina and Patsy might say – "Harvey Nichols should be absolutely fabulous for Bristol!"

Harvey Nichols will open to the public on Thursday, September 25, after the new Cabot Circus development opens at noon. For further information go to www.cabotcircus.com